Sales tax on fuel prevents goods prices from dropping — DAP
TAWAU: Consumer goods are not becoming cheaper with the lower fuel prices because of the sales tax that has been imposed on petrol and diesel for industries and commercial entities implemented on January 1 this year.
Democratic Action Party (DAP) Sabah vice chairman Chan Foong Hin said industries and commercial entities that use fuel in large quantities for their business operations have to buy taxed diesel, RON95 and RON97 from petroleum companies, which thus makes fuel more expensive for them.
“They are not allowed to buy fuel from petrol stations like the common consumers, but have to go directly to petroleum companies like Petronas, Shell and others to buy the sales-tax imposed fuel in bulk. The tax is 40 sen a litre for diesel and B5 diesel, and 58.62 sen a litre for RON95 and RON97,” Chan said in a statement yesterday.
According to Chan, manufacturers and those in the logistics business, which are all categorized as industrial and commercial entities, are not enjoying the lower fuel prices now but instead were paying more for it, though not many are aware of the situation.
“The government and some ministers have alleged that Chinese traders are the ones that refused to lower the prices of goods even though the petrol prices have gone down. Ironically, the fact is the government is the one that made the price of petrol and diesel for the industrial and commercial sector to go up,” he said.
Chan accused the government of being irresponsible by imposing the tax quietly on the industries to generate more revenue while hoping that the people would redirect their anger from the government to the business community.
He said the government continued to collect hundreds of millions in taxes from the people and the businesses each month since the fall in fuel prices.
“To be fair to everyone, all forms of taxes on the people and the businesses should be halted immediately so that the drop in fuel prices can be translated into a decrease in cost at all levels of the value chain, from manufacturers to consumers,” Chan added.